A number of water heater fireplace arrangements have been contemplated in the past, the most pertinent appearing to be that described in U.S. Pat. No. 219,978. In this patent a coil is employed in connection with a water tank for heating water in a fireplace. More recently U.S. Pat. Nos. 3,958,755 and 4,025,043 illustrate the use of encasing tanks which define the fire chamber of the fireplace and employ tubular members as a grate on which the fire may be built. When tubular members are used as a grate, it has been found difficult to build and maintain the burning of the fire since heat is removed so quickly to prevent continued burning. The hearth of the present invention is open entirely about the central portion thereof to accommodate conventional and any desired andirons or any other support for the logs and the like. The heaters of the prior art present a limited surface area for contact with the heat and the tanks defined by the casings are incapable of withstanding pressure unless inordinately heavy construction materials are utilized. The fireplace of the present invention may be used in connection with the systems illustrated in the prior art patents referred to above.